Fidelity Launches Active Bond ETFs

Fidelity becomes the second meaningful player in actively managed fixed-income ETFs—just as the other firm, Pimco, is waning in popularity.

By

Sarah Max

Oct. 11, 2014 1:50 a.m. ET

By

Sarah Max

Oct. 11, 2014 1:50 a.m. ET

There’s more news for fixed-income investors, but this time it’s from another big bond shop, not Pimco. Late last week, Fidelity Investments launched its first actively managed exchange-traded funds. The launch marks a milestone in the evolution of ETFs, and perhaps a sea change in the fixed-income world.

The three Fidelity ETFs, which began trading Thursday, mimic existing bond mutual funds and are managed by the same teams. The Fidelity Total Bond ETF (ticker: FBND) will shadow its $16 billion sibling, Fidelity Total...